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Both Major Parties Made Big Bets in the Tax Reform Fight
Both political parties are gambling on the recently passed GOP federal tax reform bill. The term in poker is “all in.” They are all in. Republicans, of course, gamble that the lower rates will spur investment — and will fire-up consumer spending. They bet the economy will experience a rising tide. And this rising tide […]
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Both political parties are gambling on the recently passed GOP federal tax reform bill. The term in poker is “all in.” They are all in.
Republicans, of course, gamble that the lower rates will spur investment — and will fire-up consumer spending. They bet the economy will experience a rising tide. And this rising tide will lift all boats.
This is not a bad bet. Similar tax reforms have lifted economies off their sickbeds around the world. Similar tax cuts under President Reagan hoisted our own economy from a morass. The so-called Kennedy tax cuts (they arrived after his death) rejuvenated our economy. Tax cuts of nearly 100 years ago were famous for doing the same.
Apart from the history, there is a logic to cuts in tax rates. After all, such cuts simply leave more money in the hands of the people. Cuts leave less money in the hands of their government.
If they are confident, the people will spend that additional money. And invest it. Both of which help the economy expand. An expanded economy then throws off more money for government. And everybody is happy.
This logic extends to business. Lower tax rates for businesses leave them with more money. If they are confident, they will use the extra money to invest in expansion.
The cuts also help to lower the cost of capital. Obviously, businesses use capital to expand.
If businesses feel comfortable and optimistic, they are more likely to make use of that lower-cost capital. They will invest it into new businesses, new markets, etc. In other words, they are more likely to expand. Which means they are more likely to add jobs. The economy gets a rising tide. And everybody is happy.
Such is the bet of the supporters of the tax reform. For instance, the reform lets companies pay much lower taxes on trillions of overseas profits. If only they will bring them back to the U.S. The gamble is twofold: Companies will indeed bring money back. And they will then use it to expand.
Meanwhile, Democrats went all in as well. They unanimously opposed the tax cuts in both houses of Congress.
They despised the tax cuts — called them horrendous. They warned that children will go to bed hungry. Oldies will die more quickly. And all that. They predict government will be starved of money from the tax-rate cuts. When starved of money, government will have to plunge into debt. Well, further into debt. The Obama attempts to rescue the economy broke all records for debt.
Democrats have refused to be part of the tax reform. They have instead proclaimed the reforms are akin to the plague.
They could have participated. They could have negotiated with Republicans. In return for their votes, they could have won various concessions. They chose not to do that. They chose to leave no fingerprints on this reform.
This is a big gamble. If the reforms work and the economy hums, the Democrats will look bad. If they work, Republicans will crow, and Democrats will eat crow.
Ah, but what if the reforms don’t work? What if we suffer a recession? Or stagflation? Or the stock market crashes? Democrats will crow that they had nothing to do with the mess. It will be the Republicans who eat crow.
Either scenario is possible, of course. There have been times when capital has been dirt cheap and profits plenty. But businesses have failed to use the capital and profits to expand. Because they had no confidence. Instead, they sat on the money. Or paid out the profits in dividends, or used them to buy back their own stock.
There have been times when consumers did not spend. Even though they had the money. They held back because they had no confidence.
In other words, the big tax reform could fail to stimulate. Just as it could be a rousing success.
What is interesting to me is that neither side is hedging its bets. Each party is all in on this bet.
Always interesting, isn’t it?
From Tom…as in Morgan.
Tom Morgan writes about political, financial, and other subjects from his home near Oneonta. Write to Tom at tomasinmorgan@yahoo.com. You can read more of his writing at tomasinmorgan.com
ISSI Technology Professionals has hired DANIELLE HOLLAND as a recruiting assistant. She works closely with the recruiting team and has experience in customer service, retail sales, and management. Holland holds a bachelor’s degree in human resources and business management from Le Moyne College. MICHAEL WIECZOREK has joined ISSI as a technical recruiter. He
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ISSI Technology Professionals has hired DANIELLE HOLLAND as a recruiting assistant. She works closely with the recruiting team and has experience in customer service, retail sales, and management. Holland holds a bachelor’s degree in human resources and business management from Le Moyne College.
MICHAEL WIECZOREK has joined ISSI as a technical recruiter. He has more than 18 years of experience in the networking, telecommunications, and managed services industry. Wieczorek holds a bachelor’s degree in business administration from SUNY Oswego.
Gomez and Sullivan Engineers, DPC
Gomez and Sullivan Engineers, DPC announced several new hires at its main office in Utica. ELIZABETH BYRON has been hired as a water resources engineer. She is a graduate of Oregon State University, where she majored in ecological engineering with a minor in humanitarian engineering. Byron is a registered engineer-in-training (EIT) and has been performing
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Gomez and Sullivan Engineers, DPC announced several new hires at its main office in Utica. ELIZABETH BYRON has been hired as a water resources engineer. She is a graduate of Oregon State University, where she majored in ecological engineering with a minor in humanitarian engineering. Byron is a registered engineer-in-training (EIT) and has been performing hydrologic and hydraulic studies and performing stability analyses. WILLIAM FRIERS has been hired as a senior civil/structural engineer. He has an undergraduate degree in civil and environmental engineering from Clarkson University, and earned his master’ degree in engineering from Rensselaer Polytechnic Institute. Friers is a licensed professional engineer with extensive engineering experience related to dam, water resources, hydroelectric, water supply, flood control, irrigation, and navigation projects. Prior to joining GSE, he served as senior hydropower engineer in support of MCA-I, the government agency charged with managing the Green Prosperity Project in Indonesia. While in Indonesia he provided oversight of planning, design, and construction activities for 21 mini-hydroelectric power projects with a combined capacity of 64 MWs. ELIZABETH WROE joins the firm as a geotechnical engineer. She has undergraduate and graduate degrees from Rensselaer Polytechnic Institute in geotechnical engineering. Wroe’s experience has focused on dam safety, slope stability and seepage analyses, bearing capacity and settlement calculations of shallow and deep foundations, and estimating soil properties based on subsurface investigations and laboratory test data. BROOKE SLAG has been hired as an administrative coordinator/project assistant. She is a graduate of SUNY Environmental Science and Forestry where she majored in environmental and forest biology. Slag’s experience includes preparing wildlife and habitat protection plans as well as federal, state, and local permits for agencies including the National Park Service, U.S. Forest Service, U.S. Fish and Wildlife, and USACE.
Barclay Damon announced that RENATO L. SMITH has been elected to the law firm’s partnership, effective Jan. 1. He is a member of the patents & prosecution and corporate practice areas and is based in the firm’s Syracuse office. Smith graduated with a bachelor’s degree from the University of Illinois and earned his J.D. from
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Barclay Damon announced that RENATO L. SMITH has been elected to the law firm’s partnership, effective Jan. 1. He is a member of the patents & prosecution and corporate practice areas and is based in the firm’s Syracuse office. Smith graduated with a bachelor’s degree from the University of Illinois and earned his J.D. from the University of Illinois College of Law. FRANCES A. CIARDULLO and KEVIN A. BARONE have joined Barclay Damon. Ciardullo is special counsel in the health care & human services practice area. Barone is an associate in the real estate and financial institutions & lending practice areas. Both attorneys are based in the law firm’s Syracuse office and will provide guidance to Barclay Damon clients across the firm’s platform. Ciardullo advises clients on health care and risk management issues. Barone focuses his practice on real estate law and institutional lending. He has worked closely with defense, environmental, and intelligence industries and has extensive experience in a variety of contract negotiations.
Bousquet Holstein PLLC has elected J.P. PARASCHOS and RYAN S. SUSER members of the law firm. Paraschos is an attorney in the firm’s business law practice group. He is a graduate of the University of Michigan Law School and Le Moyne College. Paraschos was also a Fulbright Scholar in Economics in Lesotho and South Africa.
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Bousquet Holstein PLLC has elected J.P. PARASCHOS and RYAN S. SUSER members of the law firm.
Paraschos is an attorney in the firm’s business law practice group. He is a graduate of the University of Michigan Law School and Le Moyne College. Paraschos was also a Fulbright Scholar in Economics in Lesotho and South Africa. He has served as an adjunct professor in the MBA program at Le Moyne College, teaching business law and international business law.
Suser is an attorney in the firm’s litigation and family law practice groups. He is a graduate of Albany Law School where he served as senior editor of the Albany Law Review. He is also a graduate of Syracuse University.
RYAN T. EMERY and SAMANTHA L. MILLIER have been elected to the partnership at Mackenzie Hughes LLP. Emery joined Mackenzie Hughes in 2006 and focuses his practice in the areas of litigation, estate planning, and estate administration. Admitted to both the New York and Florida state bar, he serves clients residing in both New York
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RYAN T. EMERY and SAMANTHA L. MILLIER have been elected to the partnership at Mackenzie Hughes LLP. Emery joined Mackenzie Hughes in 2006 and focuses his practice in the areas of litigation, estate planning, and estate administration. Admitted to both the New York and Florida state bar, he serves clients residing in both New York and Florida. Emery holds a bachelor’s degree from Syracuse University and a juris doctorate from Albany Law School at Union University. A member of Mackenzie Hughes’ litigation department since 2010, Millier’s practice
focuses on litigation, including commercial disputes, medical malpractice defense, products liability, and personal injury. Admitted to practice in both New York and Kentucky, she has eight years of legal experience and received her law degree from the University of Kentucky College of Law and holds a bachelor’s degree from Colgate University.
Smith Sovik Kendrick & Sugnet, PC has elected BRADY O’MALLEY a partner at the firm. He is a trial lawyer who concentrates his practice in personal injury and civil litigation. O’Malley has been named to the Upstate New York Super Lawyers “Rising Stars” list annually since 2014. He is a graduate of the Syracuse University
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Smith Sovik Kendrick & Sugnet, PC has elected BRADY O’MALLEY a partner at the firm. He is a trial lawyer who concentrates his practice in personal injury and civil litigation. O’Malley has been named to the Upstate New York Super Lawyers “Rising Stars” list annually since 2014. He is a graduate of the Syracuse University College of Law.

Lockheed recruiting to fill 200 open jobs at Salina, Owego plants
Lockheed Martin Corp. (NYSE: LMT) is seeking to fill more than 200 total open positions at its plants in Salina in Onondaga County, and Owego in Tioga County. The open positions are about evenly split between the two locations, says Matthew Wilkowski, systems engineering manager with Lockheed Martin in Salina. “It’s pretty close to 50-50,”
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Lockheed Martin Corp. (NYSE: LMT) is seeking to fill more than 200 total open positions at its plants in Salina in Onondaga County, and Owego in Tioga County.
The open positions are about evenly split between the two locations, says Matthew Wilkowski, systems engineering manager with Lockheed Martin in Salina.
“It’s pretty close to 50-50,” he says. Wilkowski spoke with CNYBJ in a phone interview on Jan. 8
Lockheed Martin is hoping to hire people for entry-level jobs and for positions that will require more experience. The jobs are available in both technology and manufacturing areas, he notes.
“It’s really due to some of our engineering population coming into retirement age, and that coupled with a whole lot of contracts coming in and future work that we’re forecasting as well,” says Wilkowski.
Lockheed Martin currently employs about 1,600 people at the Salina plant and about 2,500 in Owego.
The company is seeking candidates for positions in systems engineering, electrical engineering, and hardware and software engineering. On the manufacturing side, Lockheed is looking for experienced assembly and electronic technicians and testers, according to Wilkowski.
“In the engineering-technology part of our business, we’re looking for people with STEM-related bachelor’s degrees … degrees such as electrical engineering, computer engineering, computer science, math and physics majors,” he says.
STEM is short for science, technology, engineering, and mathematics.
“On the operations or manufacturing side, the firm wants people with experience in the different trade skills in assembling and things like that,” says Wilkowski.
The Bethesda, Maryland–based defense contractor held a career fair for those openings on Jan. 11 at Destiny USA.
CNYBJ asked Wilkowski what people can do if they’re interested in applying but couldn’t attend the career fair.
“They can go to lockheedmartin.com/careers and there they can sort and filter on both Liverpool, New York and Owego, New York to find the available positions at both of these New York sites,” says Wilkowski.
He offered some advice to people who might choose to pursue an entry-level position with Lockheed Martin.
Candidates “don’t necessarily need to be a radar engineer” to apply for an entry-level position, as long as they have a background in the STEM fields, he says. Wilkowski says Lockheed Martin will provide training “based on the engineering skills that you already have.”
Contact Reinhardt at ereinhardt@cnybj.com

Power from Ithaca–area solar farm hits the market
ENFIELD, N.Y. — Businesses and residential customers in parts of Central New York and the Southern Tier can now buy electricity powered by a new solar array in Enfield, just west of Ithaca. BlueRock Solar, a division of Syracuse–based BlueRock Energy, said the 2.3 megawatt array was completed and connected to the power grid. Michael
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ENFIELD, N.Y. — Businesses and residential customers in parts of Central New York and the Southern Tier can now buy electricity powered by a new solar array in Enfield, just west of Ithaca.
BlueRock Solar, a division of Syracuse–based BlueRock Energy, said the 2.3 megawatt array was completed and connected to the power grid.
Michael Francis, general manager of BlueRock Solar, tells CNYBJ that customers in NYSEG’s central zone — which includes Ithaca, Binghamton, Auburn, and Elmira — can now subscribe to purchase power from the solar farm that sits on 13.5 acres on Mecklenburg Road.
This is BlueRock’s second community solar farm. The first was completed in April in Millport, south of Watkins Glen, and was fully subscribed within two months.
The Enfield solar farm is larger, Francis says, and can provide enough electricity to power some 300 homes or small businesses. Each subscriber can sign up for a portion of the output of the 6,804 solar panels that make up the array, he says.
Renovus Solar, of Ithaca, was the general contractor.
Each month, the array will be metered and customers will be charged for the amount of energy they signed up for. Francis says residential customers and small businesses will qualify for a 5 percent discount on the supply and delivery portion of their bill.
A community solar farm simplifies using solar electricity, Francis explains. There is no need to purchase equipment or have installers come to the home or business. “We are not running a wire to their house,” he says. Instead, the electricity is transported to the home on the existing power grid.
“There is no money down,” Francis says. “You’re just purchasing the power.”
Francis added that the savings customers receive involves two bills, one from BlueRock and the second from NYSEG. Customers would pay BlueRock a discounted price for supply and delivery of power and would receive credits on their NYSEG bill for the higher, undiscounted price.
BlueRock says it has other projects in the works, including another solar farm in Western New York.
While nearly all subscribers for the Millport solar farm are residential customers, Francis says that small businesses can subscribe and receive a discount. Additionally, he says, marketing materials are available, so businesses can share with their customers that they are using solar power.
According to the Solar Energy Industries Association, New York gets slightly more than 1 percent of all its electricity from solar, enough to power nearly 200,000 homes.
Contact McChesney at cmcchesney@cnybj.com

Chentronics expands Norwich operations
NORWICH, N.Y. — Esterline/Norwich Aero Products recently sold the building located at 50 O’Hara Drive in Norwich. Marty Dowd and Rick Searles of CBRE/Syracuse represented the seller in the transaction, the real-estate firm said in a news release. The price was not disclosed. Chentronics, LLC, will occupy the building, expanding its Norwich operations to the
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NORWICH, N.Y. — Esterline/Norwich Aero Products recently sold the building located at 50 O’Hara Drive in Norwich. Marty Dowd and Rick Searles of CBRE/Syracuse represented the seller in the transaction, the real-estate firm said in a news release. The price was not disclosed.
Chentronics, LLC, will occupy the building, expanding its Norwich operations to the larger 57,640-square-foot industrial/light manufacturing facility. The firm’s current address is 115 County Road 45, Airport Industrial Park, Norwich — according to its website.
Chentronics provides high-energy ignition and flame detection technology, and is a division of John Zink Company, which is part of Koch Industries.
Contact the Business Journal News Network at news@cnybj.com
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